Cryptonary's trades: CAKE setup

Disclaimer: This analysis is for informational purposes only and not financial advice.

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Weekly Structure

CAKE has been building a strong medium/long-term base. Since May/June 2022, it has formed a clean rounding bottom structure, an accumulation phase that has lasted over 1200 days. This is a decent enough accumulation phase, which can be very positive for Cake.

Zooming in to 2025 price action, CAKE began consolidating inside an ascending accumulation wedge, tightening up the price action. That wedge just broke out on the weekly timeframe, telling us that it might be time for the first leg of its potential expansion.

Timing is right too...

• BNB ecosystem coins are heating up across the board. And what do most BNB users rely on? PancakeSwap.
• Recent fundamental upgrades and updates have been on the positive end as well for PancakeSwap.

Trade Setup: 

Breakout Confirmation

• Main Breakout Zone: $4.82,
• Weekly 200 EMA: $4.70,

Confirmation= Weekly close above $4.82, that’s when the real move starts.

Entry Plan:

• Accumulation Zone: $3.38 to $4.82. This is where you start building size (15-20%)
• DCA strategy: Add 5-10% on each 5-10% dip,

Retest Setup:

A clean retest of $3.38 = a discounted second chance

Targets

• Target 1 (Main Scaling Zone): $8.80 – $10.40. This represents roughly a 100% return from the breakout confirmation zone
• Plan to scale out 80% of the position in this range
• Moonbag Zone: $17 – $20. This would represent a 300% return from the breakout
• Keep 10-20% of the position running in case of strong continuation

Invalidation

• Cut the position below $2.30. Clean level for structural failure on higher timeframes

Closing words

We originally shared the alpha on CAKE when it was trading around $3.38⁠, right around the yellow zone, in our trading channel. That is when it started breaking out, and since then, it has been up nearly 20%. 

The main breakout is still ahead. $4.82 is the real trigger, and we’re not there yet. So if you’ve been watching from the sidelines, this might be a good opportunity if you want to get some exposure to the BNB Ecosystem. 

Peace!

Cryptonary, OUT!